Posted on: 12th Jan, 2010 12:09 pm
When mid-January rolls around every year, we all feel bad for the people in the South who are experiencing frigid weather that we Northerners are so accustomed to, but we also begin to think about preparing our tax returns. After all, if there's a refund on the way, we want it right away!
Many of us are not comfortable doing our own returns, so we seek out a professional to assist us. As we know, of course, H&R Block and Jackson & Hewitt, among others, are practically on every street corner, beckoning us to come in.
Most tax preparers are competent, honest and professional, offering good service to their clients. Nonetheless, it is imperative that we do our homework when selecting a preparer. When you file a tax return with the IRS, you are legally responsible for what appears on it, no matter who prepared it. Any underpayment of taxes will result in interest and penalties, and the IRS is serious about its collections.
If you are thinking of hiring someone to help with your taxes this year, these are some of the things you need to watch out for:
A paid preparer must sign the return and input the appropriate identifying number.
If a preparer claims to be able to get you a larger refund than others, beware. A properly filed return should be the same no matter who the preparer.
Be wary of any preparer who guarantees results or who bases fees on a percentage of the amount of the refund.
You should always choose a preparer who will be available to you for questions. If they close their doors on April 15, avoid them - you may have questions throughout the year.
Do take advantage of non-profit agencies, the IRS itself and volunteers who will help you with your returns. If your tax return is a basic one without "frills," there's no need to spend large sums to get the job done.
Run from anyone who tries to pressure you to take out a loan in anticipation of your refund. Interest rates on these loans range from 36% to over 500%, according to government data.
The IRS recently announced that they plan to require any paid tax preparer to register, be tested for competency and take continuing education classes.
Remember that only certified pubic accountants, enrolled agents and attorneys are authorized to represent taxpayers before the IRS in all matters, including audits, collection actions and appeals.
Bookmark IRS.gov on your computer and monitor the site for news on scams and other tax schemes.
And if you desire, it the National Association of Tax Professionals is offering a free brochure, "Finding the Right Tax Preparer." It's available at natptax.com.
Many of us are not comfortable doing our own returns, so we seek out a professional to assist us. As we know, of course, H&R Block and Jackson & Hewitt, among others, are practically on every street corner, beckoning us to come in.
Most tax preparers are competent, honest and professional, offering good service to their clients. Nonetheless, it is imperative that we do our homework when selecting a preparer. When you file a tax return with the IRS, you are legally responsible for what appears on it, no matter who prepared it. Any underpayment of taxes will result in interest and penalties, and the IRS is serious about its collections.
If you are thinking of hiring someone to help with your taxes this year, these are some of the things you need to watch out for:
A paid preparer must sign the return and input the appropriate identifying number.
If a preparer claims to be able to get you a larger refund than others, beware. A properly filed return should be the same no matter who the preparer.
Be wary of any preparer who guarantees results or who bases fees on a percentage of the amount of the refund.
You should always choose a preparer who will be available to you for questions. If they close their doors on April 15, avoid them - you may have questions throughout the year.
Do take advantage of non-profit agencies, the IRS itself and volunteers who will help you with your returns. If your tax return is a basic one without "frills," there's no need to spend large sums to get the job done.
Run from anyone who tries to pressure you to take out a loan in anticipation of your refund. Interest rates on these loans range from 36% to over 500%, according to government data.
The IRS recently announced that they plan to require any paid tax preparer to register, be tested for competency and take continuing education classes.
Remember that only certified pubic accountants, enrolled agents and attorneys are authorized to represent taxpayers before the IRS in all matters, including audits, collection actions and appeals.
Bookmark IRS.gov on your computer and monitor the site for news on scams and other tax schemes.
And if you desire, it the National Association of Tax Professionals is offering a free brochure, "Finding the Right Tax Preparer." It's available at natptax.com.
Here are few tips from my end to chose a tax preparer:
Tax preparer's qualification: Check out the qualification of the tax preparer that you've chosen. You may ask the preparer whether or not he is affiliated with any professional organization which offers continuous education and resources to tax preparers.
Service fees of the tax preparer: Every tax preparer will charge you a certain amount as his/her fees. If you find that the tax preparer is charging the fees on the basis of the amount of your refund then please avoid them. Also, avoid those tax preparers who claim that they would help you get larger refunds than others.
Don't sign a blank return: It is not a good idea to sign a blank tax form. You should avoid tax preparers who ask you to do so.
Recheck the entire form before you sign it: Recheck and ask questions, if any, before signing the tax return. Asking questions will help you understand everything regarding your tax return.
Tax preparer's qualification: Check out the qualification of the tax preparer that you've chosen. You may ask the preparer whether or not he is affiliated with any professional organization which offers continuous education and resources to tax preparers.
Service fees of the tax preparer: Every tax preparer will charge you a certain amount as his/her fees. If you find that the tax preparer is charging the fees on the basis of the amount of your refund then please avoid them. Also, avoid those tax preparers who claim that they would help you get larger refunds than others.
Don't sign a blank return: It is not a good idea to sign a blank tax form. You should avoid tax preparers who ask you to do so.
Recheck the entire form before you sign it: Recheck and ask questions, if any, before signing the tax return. Asking questions will help you understand everything regarding your tax return.
Hi George,
Choosing the right tax preparer is an important step towards filing tax returns properly. It's good to use big chains like H&R Block or Jackson Hewitt as they are quite experienced in handling tax related issues. In case a tax filer's return is audited, not everyone is authorized to represent him before the IRS. Big chains like those mentioned above have professionals who can represent you in such situations.
However, I must add that one should always avoid such preparers who:
Choosing the right tax preparer is an important step towards filing tax returns properly. It's good to use big chains like H&R Block or Jackson Hewitt as they are quite experienced in handling tax related issues. In case a tax filer's return is audited, not everyone is authorized to represent him before the IRS. Big chains like those mentioned above have professionals who can represent you in such situations.
However, I must add that one should always avoid such preparers who:
- A. Guarantee a refund upfront.
B. Tell you that they will send your refund to an address which I not yours.
C. Are reluctant to provide you with a photocopy of your return.
D. Do not sign the return or put their Social Security number, as per the laws.
E. Say they can create papers to support exaggerated deductions.